Korean stocks rose 0.63 percent Tuesday, boosted by a rally in chipmakers and shipbuilders, analysts said. The local currency rose against the U.S. dollar.
The benchmark KOSPI advanced 12.53 points to end at 2,003.69. Trading volume was moderate at 599 million shares worth 6.26 trillion won ($5.57 billion) with decliners leading gainers 383 to 450.
“Concerns over rising oil prices eased ... and chipmakers rallied on hopes that they will benefit down the road with increased market shares,” said Kim Hak-kyun, an analyst at Daewoo Securities.
Dubai crude oil, South Korea’s benchmark, finished at $122.56 per barrel on Monday, up $0.99 from the previous day and rising for a fourth straight day. But Brent crude oil fell $0.51 to $124.70 per barrel.
Chipmakers jumped on news that Japanese rival Elpida Memory Inc. filed for bankruptcy protection on Monday.
Analysts said Elpida’s move may provide a golden opportunity for South Korean chipmakers to further increase their presence in the chipmaking sector.
Tech giant Samsung Electronics gained 1.2 percent to close at 1,185,000 won, and Hynix Semiconductor jumped 6.8 percent to 29,850 won.
Shipbuilders also remained in positive terrain on expectations that the sector will recover down the road.
Hyundai Heavy Industries, the world’s largest shipbuilder, rallied 5.38 percent to close at 333,000 won and Samsung Heavy Industries soared 6.69 percent to end at 39,850 won.
Daewoo Shipbuilding & Marine Engineering also spiked 6.71 percent to close at 34,200 won on news that it has won a $560 million deal to build part of an offshore oil production platform.
Airlines and petrochemical firms rose on eased concerns over rising oil prices. Korean Air, the country’s leading airline, rose 3.2 percent to 51,800 won. LG Chem, the country’s leading chemicals maker, gained 1.54 percent to 395,000 won.
Himart, a local home appliance retailer, dropped for a second straight day to close at 57,500 won, down 10.58 percent from the previous day’s close, on news that its executives are being investigated by prosecutors for tax evasion.
The local currency closed at 1,124.5 won to the greenback, up 4.6 won from Monday’s close, as overseas investors bet risky assets amid decreased market volatility, dealers said.
